Pennsylvania becomes fourth US state to OK online gambling

The Pennsylvania House passed a bill that will legalize online casinos and poker today with a 109-72 vote, following the bill's amendment and subsequent passage by the Senate yesterday. Now, H 271 awaits a signature from Governor Tom Wolf. This makes Pennsylvania the fourth U.S. state to say yes to online gambling.

The tax rate may prove to be a bit of a hiccup moving forward, as online slot machines will be taxed at 54%, a percentage many feel is steep. New Jersey, by comparison, has a 17.5% tax for online slots. Online table games and online poker in Pennsylvania will be taxed at a rate of 16%.

H 271 does allow for operators to purchase separate licenses: one for online slots, one for house-banked games and one for online poker. A license including all three verticals can be purchased for $10 million by existing casino operators, provided the purchase is made within the first 90 days of the licenses being made available. Each license is $4 million separately.

PlayPennsylvania has projected $364 million in annual revenue for the state, but that number may change as the effects of the tax rates play out.